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Analysis of the Development Trends of Internet Plus Agriculture in China

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Analysis of the Development Trends of Internet Plus Agriculture in China

  I. The trend of agricultural product e-commerce will further deepen, the trend will accelerate, sales will increase, and consumption habits will take shape

In the next 5 years, the transaction volume of agricultural product e-commerce in China will account for 5% of the transaction volume of agricultural products, the transaction volume of foreign-related agricultural product e-commerce will account for 1%, and the transaction volume of agricultural product mobile commerce will account for 2%. China's agricultural product e-commerce, agricultural means of production e-commerce, and rural renewable resource e-commerce will all develop, and rural supply and marketing cooperatives will play a relatively large role.

  II. The mobile end will continue to gain momentum, and decentralization will become further evident

According to the "2016-2020 In-depth Research and Investment Prospects Forecast Report on China's Internet Plus Agriculture Industry" by China Investment Consulting, although the number of rural internet users is growing rapidly, the level of rural economic development varies across China. Farmers have limited computer operation skills, and the "last kilometer" problem of the information highway is still particularly prominent in rural areas. With the popularization of mobile phones in China, the number of mobile phones in rural areas has also grown substantially. The widespread use and simple operation advantages of mobile phones have brought an opportunity for information to solve the "last kilometer" problem of rural information.

  III. Agricultural new media marketing will continue to explode, producing a number of influential agricultural self-media outlets and self-made stars

With the development of science and technology, new media promotion forms such as mobile phones, Weibo, WeChat, and the internet have spread among consumers. They have broken through traditional agricultural science and technology promotion methods, abandoned the previous forms of buying vegetables at markets and communicating by phone, and the use of self-media is good news for agricultural people. The future business opportunities of agriculture lie entirely in this.

  IV. Agricultural crowdfunding and presale will become major business formats of agricultural product e-commerce

E-commerce merely uses online platforms to sell products, while agricultural crowdfunding has a complete creative concept before the product is formed, contains more content and selectable products, and provides users with personalized customized services. It is a powerful means of new agricultural production innovation. On top of this, agricultural crowdfunding stands at an even higher angle, helping farmers solve funding problems and providing them with sales channels. At the same time, it also allows those who want to eat healthy and safe food to fulfill their wishes.

  V. Composite agricultural business formats will become the new normal and new model

Traditional marketing models have a relatively narrow sales scope, high sales costs, and brand awareness is also subject to certain limitations. Although agricultural products are good, the brand advantages brought by decentralized operations are not prominent.

At present, the arrival of the mobile internet era is profoundly changing the industrial environment of agriculture in terms of production, sales, services, and capital. A modern agricultural industry model integrating agricultural e-commerce, direct supply from the places of origin of high-quality green food, and experiential tourism will bring new development opportunities to agriculture, producing composite new business formats such as rural leisure tourism, experiences, homestays, and product sales.

  VI. The power of regional and association forces will play a greater role in agriculture's "Internet Plus"

The "2016-2020 In-depth Research and Investment Prospects Forecast Report on China's Internet Plus Agriculture Industry" mentions that agricultural product e-commerce is the crown of e-commerce, and fresh agricultural product e-commerce is the crown of the crown. With economic and social development, the regionalization of fresh agricultural product e-commerce is becoming increasingly obvious, and with the development of regionalized e-commerce, it is also becoming increasingly efficient.

In agricultural product e-commerce transactions, through platform construction and specialized division of labor, bases are only responsible for the production segment, e-commerce operators only develop users and serve users, and logistics is outsourced to professional fresh logistics enterprises. This can simultaneously solve the three major problems of standardization, product safety, and cold-chain logistics, and its business is also becoming increasingly regionalized.

  VII. The landscape of third-party e-commerce platforms will further stabilize

With the closure of third-party platforms such as "Fruit Camp," in 2016 third-party e-commerce platforms for agricultural products will undergo further reshuffling, and will further reflect the trend of "winner takes all and giant competition" among e-commerce platforms.

  VIII. Local communities for agricultural product e-commerce will gradually rise

With the accelerated advancement of urbanization and agricultural modernization, community e-commerce will play an important role. The cost-performance ratio of agricultural products will be very high, even higher than that of purchases through previous traditional channels. Fresh agricultural product e-commerce will be more accepted by consumers, fresh e-commerce enterprises will begin to make profits, mobile-end agriculture-related e-commerce with communities as the main force will occupy the main body, the influence of direct shipping from production areas will decline, and problems such as fresh e-commerce logistics and cold chains can be well solved.

  IX. Agricultural product brand building will accelerate and become another field, after clothing, in which e-commerce brands rise

Due to the overall lack of brands in agricultural products, there is greater room for brand building than in other categories. Therefore, in the future, branded agricultural product e-commerce will have broader market space. At the same time, due to the rapid growth of agricultural product e-commerce and the high logistics costs, current e-commerce products are still mainly concentrated in mid-to-high-end products, and such products have a natural dependence on brands. Products that have not completed brand building will find it difficult to gain a place in future competition.

  X. The government will continue to increase support for rural (agricultural and agricultural product) e-commerce

In the past few years, because rural e-commerce infrastructure could not keep up, it was always led by spontaneous market forces. In recent years, through active local practice, a lot of experience and samples have been accumulated, which has also given the government sufficient reference for research, and the time for issuing relevant policies and documents has become increasingly mature. That is why policies were introduced continuously within a period of time.

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